A nursery school for the children of MG Rover employees has been granted emergency funds to prevent its closure in the wake of the manufacturer's collapse.

Mini Rovers in Longbridge takes in 34 children from former Rover employees with money for their childcare deducted from their salaries in advance.

In April tens of thousands paid by former employees was not passed on to the nursery by Rover, and managers were forced to tell parents that they would have to close if money was not found.

Staff at the nursery were able to break the news to parents yesterday that emergency funding had been granted by the Government to keep it open. The creche is run by national chain Busy Bees on behalf of Rover and the grant will give staff time to negotiate with administrators and the owners of the building about adding it to their string of nurseries.

The donated money was sustainability funding from the Early Years Childcare Development Partnership.